Washington, D.C. — The American Economic Liberties Project released the following statement after the New York State Assembly voted to pass A1278B, a ban on noncompete agreements.

“Workers, honest businesses, and entrepreneurs won today as New York lawmakers voted to ban noncompete agreements,” said Pat Garofalo, Director of State and Local Policy at the American Economic Liberties Project. “Banning noncompete agreements will ensure corporations can’t use their power to trap employees in their jobs, push down wages across the board, block small business formation, and ultimately raise prices. The bill also sets an important standard by voiding existing noncompete agreements.”

“We applaud Sen. Sean Ryan and Assemblymember Latoya Joyner for their leadership. Gov. Kathy Hochul should sign the bill ASAP,” added Garofalo.

Non-compete agreements are one-sided arrangements that trap employees in lower-paying jobs and restrict their career mobility. They affect professionals at all levels, from corporate executives to franchise workers. The Federal Trade Commission estimates that banning noncompete agreements nationally would increase workers’ earnings by nearly $300 billion per year.

Banning these agreements is also popular across the country. An Ipsos poll found that three in five Americans (61%), including two-thirds of those who are currently employed (66%), support the FTC’s proposed ban on non-competes. A Small Business Majority poll, conducted in April, found that 59% of small businesses support the FTC’s proposed rule, with only 14% opposing the ban.

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.